Some BackgroundFirst, a little history lesson. In 1998, the IRS Reform and Restructuring Act was passed, ordering the IRS to concentrate more on taxpayer rights rather of collection activities. As a result, about one out each 79 tax returns had been audited that year. This dramatic decrease continued, and by 2003, according to IRS data, only one of every 150 person taxpayers were audited.I am afraid this positive trend did not continue although. The IRS soon returned to their wicked ways and by 2005, the number of audits hit it’s highest since 1998. The 2006 tax year saw 1.28 million people audited.One big purpose this happened is simply because taxpayers, primarily those that skew their numbers purposely, became as well bold. More and much more tax errors were being made and the IRS decided to step up collections again. So the same lawmakers who as soon as demanded the IRS give taxpayers the benefit of the doubt began applauding the new aggressive method. Members of Congress are hoping that enhanced enforcement efforts will help close the $345 billion tax gap. According to 2001 figures, that quantity represents the distinction in between what taxpayers should have paid and what they really paid. So, without some help from extra IRS collections, Congress would have to think about raising taxes.But do not let fear of a possible audit discourage you from filing for credits or taking legitimate deductions. Even although some actions taken on your tax return are likely to raise a red flag, that doesn’t necessarily imply you will be audited. Even if your return is questioned, it is not absolute that you’ll end up owing the IRS. As long as your deductions and expenses are legitimate and you have documentation, you’ll have absolutely nothing to worry about.Types of AuditsBut nonetheless, if you’ve discovered yourself in the cross-hairs of the IRS, it’s important to know what you’re up against. Read beneath to learn about the different sorts of audits and what type of trouble you’re in.Correspondence Audit: The correspondence audit is the simplest type of IRS audit. Throughout this audit, the IRS sends the taxpayer (via mail) a request for proof of a particular deduction or exemption taken by either finishing a special type or sending photocopies of relevant financial records. On a positive note, the tax payer has the greatest chance of winning a correspondence audit.IRS Office Audit: An IRS workplace audit is done in an IRS workplace and is mostly about simple tax matters.Field Audit: Field audits are generally the most complete IRS audits and are performed by experienced IRS officers. I am afraid to say that a field audit usually outcomes in additional tax bills for the tax payer.IRS Repetitive Audit: An IRS repetitive audit is an IRS audit conducted on the same tax payer over and over. If no additional tax bills outcomes from an audit and the IRS desires to audit the exact same tax payer again, the tax payer can ask the IRS to discontinue the IRS audit on the ground of IRS repetitive audit.Would you such as some more information about IRS Audit representation Orlando?